Wasted Dollars: The Problem of Unused Software

A significant percentage of organizations will increase their software budgets for the indefinite future, according to a recent survey from Flexera Software. However, there's also an alarming rise of "shelfware," indicating that too much money is spent on tools that end up under-utilized, or get abandoned. Given that the total market for packaged software has been estimated at $325 billion, under-utilized software is getting to be an expensive problem. Not surprisingly, many companies are dissatisfied with the way they manage software licenses and usage, according to the survey. "Corporations adjust quickly to economic realities, and in this economic downturn they've become expert in leveraging software to offset leaner staff," says Steve Schmidt, vice president of corporate development at Flexera Software. "But they've developed a blind spot—investing heavily in efficiency-creating technologies like software without really understanding how to ensure this critical asset is being optimally used. Consequently, an unacceptable proportion of that expenditure is wasted." More than 100 enterprise executives participated in the research.

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Collecting Dust 56% say at least one-tenth of their applications spend is associated with tools that are under-utilized, up from 49% last year.